Education Matters US

School leaders expect the Illinois State Board of Education to designate the district as being in “financial recognition,” the highest financial rating the state gives to school districts.

Roughly four years ago, the district was the worst of the worst as the state assumed control of the district and the district wallowed in the “financial watch” rating.

The district was considered in “financial review” for the past two years and has now completely rebounded.

“It’s something that’s been a long time coming,” said district Chief Financial Officer Walter Korpan. “This was our goal five-and-a-half years ago. I’m surprised it’s happened this quick, but on the other side, I wouldn’t expect anything less.”

In the late 1990s the district was in the midst of a financial crisis that threatened to shut it down.

Its short-term debt was more than $14 million, and its long-term debt was a staggering $90 million.

When a financial oversight panel failed to make adequate progress, a state finance authority took over the district in 2002.

The state authority has final say in all district business and took several steps to get the district’s finances in order.

Korpan said the state considers several things when judging a school district’s financial health, including fund balances, revenue and expenses.

The district has been operating under balanced budgets for several years now, and has also eliminated its short-term debt.

The district also made significant headway in its long-term debt, though the approval of a $17 million referendum proposal in the spring raised that debt to around $87 million.

The state is pleased with the district’s progress, said Deb Vespa, of the state board of education.

“They’ve done it through hard work. It’s been due diligence on the board of education’s and the finance authority’s part to watch the district and live within their means,” she said. “They’ve worked very hard, and we hope it continues.”

Korpan hopes the district can continue improving and build on its momentum.

“We did what we could do to reduce the debt, but we improved our education process at the same time,” he said. “It’s another indicator that things are getting better. It’s another stepping stone to improving the Round Lake education.”